How To Compare Auto Insurance Quotes

Comparing auto insurance quotes is essential to finding the right coverage and insurer for your needs at a price that suits your budget. However, there’s more to it than simply looking at the premium for each policy — and if that’s how you shop, you may be overpaying to be underinsured.

Here’s what you need to know about comparing auto insurance quotes.

Why Comparing Auto Insurance Quotes Matters

Insurers calculate risk differently to determine the cost of coverage. Companies often consider factors such as your age, driving history, and the type of vehicle you drive. However, insurers may weigh these factors differently, leading to significant price differences across comparable plans, even for drivers with similar profiles.

Additionally, reviewing multiple quotes can help you avoid major issues, such as overpaying for insurance or being underinsured. With each auto insurer offering its own unique options for coverage, the only way to make sure you’re getting the right plan is to review detailed quotes and plans from different companies.

At the end of the day, it’s hard to make the right decision about auto coverage without being informed about all of your options. Comparing auto insurance quotes ultimately helps with long-term financial savings without sacrificing the coverage you need to stay protected on the road.

Information You Need Before Comparing Auto Insurance Quotes

There are a few pieces of information you need to have on hand before you can start comparing auto insurance quotes. You’ll need to share this information with auto insurers to request your quotes. Still, some of it is also useful for you to have available and accessible when it’s time to evaluate their offerings.

Personal and Driver Information

First and foremost, you’ll need to provide some personal information to get a quote, including your name, age, address, marital status, and current license status.

You’ll also need to share an accurate and complete picture of your driving history, such as past accidents, tickets, and how long you’ve been driving. Auto insurance companies use this information to assess how risky you are to insure, with riskier drivers often paying more for coverage.

When requesting quotes from different insurers, be honest and consistent with the information you give to each one. Complete and accurate personal information allows you to make apples-to-apples comparisons between quotes from different companies. Otherwise, you won’t be able to compare the resulting quotes fairly.

Vehicle Information

In addition to your personal information, you’ll need to share details about the vehicle you want to insure. Generally, insurers need to know the make, model, and year of your car, as well as its primary use, to give you an accurate quote. You may need to specify whether you lease or own the vehicle and how you’ve financed it if you don’t own it outright.

Factors such as vehicle safety features, repair costs, mileage, and general vehicle age can affect pricing. For instance, vehicles with certain safety features may be considered less risky on the road and therefore less expensive to insure. However, older vehicles that lack these features may be a bigger liability, leading to higher premiums.

Again, you need to be honest with the information you provide about your vehicle — even if it means higher insurance costs. Inaccurate data about your vehicle can result in misleading quotes that lack adequate coverage.

Current Coverage Details

When comparing quotes, both you and auto insurers can benefit from greater insights into your current coverage. Insurers can put together a more accurate and useful quote if they have details about your existing policy, such as limits, deductibles, coverage gaps, and claims history.

Having your current policy on hand makes it easier for you to compare new quotes. It can serve as your baseline, helping you avoid accidental downgrades or coverage gaps.

How To Compare Auto Insurance Quotes Step By Step

It isn’t enough to simply get multiple quotes; you also have to take care when comparing them. Here’s how to properly compare auto insurance quotes:

Compare Coverage Types First, Not Price

Tempting though it may be, don’t rely too heavily on the quoted price when reviewing policies. You should consider price, but it shouldn’t be the first or only thing you look at. If you default to the least expensive policy without considering what it actually provides, you could end up without the coverage you need or want.

Instead, start by looking at the coverage in the policy itself. Each quote you look at should include:

• *Auto liability coverage:* Protects you if you’re at fault in an accident. It has two components: bodily injury liability (for others’ medical bills for injuries you caused) and property damage liability (for damage you caused to others’ property).
• *Personal injury protection (PIP):* Covers medical expenses if you get hurt in an accident, regardless of who’s at fault. It may also cover other related costs, such as childcare or lost wages.
• *Medical payments coverage:* Pays for your and your passengers' medical costs in the event of an accident, no matter who is at fault. However, unlike PIP, you can use it for medical expenses.
• *Uninsured/underinsured motorist coverage:* Can assist in medical or property damage costs if you’re harmed in an accident with someone who doesn’t have sufficient or any insurance.
• *Comprehensive coverage:* Pays for vehicle damage from events beyond your control, such as theft or weather. Lenders usually require it if you’re financing or leasing your vehicle.
• *Collision coverage:* Can cover vehicle expenses related to any kind of collision, whether you’re at fault or not. Like comprehensive coverage, lenders often require this if you’re leasing or paying off your vehicle.

Make sure you have the minimum coverage legally required in your state. Not all states require all kinds of coverage, and many may have different minimum amounts. However, you may also consider adding optional coverage for further protection, like roadside assistance or rental car coverage.

Whatever you choose, focus on evaluating how much the coverage protects you before evaluating its cost.

Review Coverage Limits and Deductibles

For each type of coverage in your policy, be sure to review the associated limits and deductibles.

Your liability limit refers to the maximum amount your insurance pays for damages and injuries you cause. You’ll likely encounter multiple liability limits within a single policy, with differing amounts for medical expenses and property damage. There’s a minimum amount you’re required to have, but only opting for the minimum means you have to pay more out of pocket if an accident results in costs that exceed your liability limit.

Your deductible is the amount you have to pay for damage to your vehicle before your insurance pays anything. Your deductible greatly influences your monthly premiums. High deductible policies mean lower premiums, but also higher out-of-pocket expenses if you file a claim.

When it comes to both liability limits and deductibles, you don’t want to overpay, but it’s equally important to protect yourself — and your finances — should the worst happen. It’s all about finding the right balance between your personal risk tolerance and what you can afford.

Check What Is Included or Excluded

Look thoroughly at each quote to see what it includes, as well as anything that it excludes. Coverage details and optional add-ons can vary between providers, which leads to significant differences between seemingly similar policies.

Additionally, policies may have specific exclusions that can impact how useful the coverage is for you. Common exclusions from policies include theft of your personal belongings from the inside of your vehicle, routine wear and tear or maintenance, and damage caused intentionally or by purposefully risky behaviors (like racing).

When reviewing policies, check out these details and ask about what additional coverage you can purchase, if any, to bridge any gaps. You need to have a complete understanding of what coverage looks like and what your options are to be a properly insured driver—that’s why looking at the headline price isn’t enough.

Factors That Affect Auto Insurance Quotes

Auto insurers take a variety of factors into account when providing quotes to drivers. To fully understand your quotes, it’s essential to understand what these factors are and why insurance providers consider them. Here are some of the most significant:

Driving Record and Claims History

Insurers tend to assess how risky you are to insure based on your past as a driver, so your driving record and claims history can have significant impacts on future quotes. If you’re at fault in previous crashes, insurers may worry you’re likely to do the same in the future and charge you more for coverage. The same can be true if you have a string of prior traffic violations for unsafe driving, such as speeding or using your cell phone while driving.

Quoted costs may be even higher if these violations have happened in the recent past. The same can be true if you’ve submitted claims to insurance previously, with more recent claims potentially causing higher prices on your new policy. However, some insurers penalize claims more heavily than others. This means that, for some companies, quoted premiums may be much higher than they would be elsewhere, even if you provide the same information to both insurers. This is why shopping around for quotes can be so valuable.

Credit-Based Insurance Scores (Where Allowed)

Credit-based insurance scoring is another factor that can affect auto quotes. In essence, insurers will look at your credit history and use it to predict how likely you are to make a claim. In particular, they may try to determine how much that claim would end up costing compared to your premiums, and factor that information into how much you’re charged for coverage.

It’s worth noting that your credit-based insurance score is not the same thing as a traditional credit score. Lenders use your credit score to determine how risky you are when borrowing money (i.e., how likely you are to repay your accrued debt). Both scores attempt to measure risk, but providers use credit-based insurance scores in the context of determining the cost of your auto insurance. Meanwhile, lenders use credit scores when you apply for a mortgage, credit card, or loan.

That said, not all states allow for the use of credit-based insurance scores. States with restrictions for auto policies include:

• *California:* No impact on coverage eligibility or policy rates.
• *Hawaii:* No impact on coverage eligibility or policy rates.
• *Maryland:* Potential impact on new policies only.
• *Massachusetts:* No impact on coverage eligibility or policy rates.
• *Michigan:* No impact on coverage eligibility or policy rates, but potential impact on installment plans.
• *Oregon:* Potential impact on both coverage eligibility and new policy rates.
• *Utah:* Potential impact on coverage eligibility for new policies; may be used to lower policy rates.

Keep in mind that credit-based insurance scores are not the only factors that insurers consider, even in states where providers can legally use them freely.

Location and Mileage

Where you live is another factor insurers typically take into account when putting together a quote, which is why you need to disclose your ZIP code when requesting quotes. After all, you aren’t the only driver on the road, and others’ actions behind the wheel can end up being just as costly for insurers as your own in the event of an accident.

If you live in an area with high rates of traffic, accidents, vandalism, or car theft, you may be more likely to experience those same issues yourself — meaning you’re more likely to file a claim with your insurer to correct the issue. The same may be true if you live in an area known for severe weather that damages vehicles, such as hail or flooding.

The number of miles you put on your vehicle is a similarly important factor. If you drive a large amount or have a long commute, you’re spending more time on the road. This means you’re more likely to get into an accident that requires you to file an insurance claim, even if it isn’t your fault.

This is one of the reasons drivers with similar profiles can receive different auto insurance quotes. If someone lives in a high-risk area and a comparable driver lives in a lower-risk one, they may receive different quotes based on their location alone.

How Comparing Multiple Providers Can Help You Save

Each auto insurer prioritizes different risk factors and uses its own proprietary method to determine coverage costs for drivers. If you shop with a single provider, you’re relying on that provider's pricing method for their policies.

However, shopping around reveals other pricing opportunities that wouldn’t otherwise be available to you. You might just find a policy with coverage that better suits your needs. And by looking at multiple offers side-by-side, you can see how much coverage each insurer provides for the quoted price. That’s where you may be able to find a more robust, protective policy for a similar or even lesser cost.

Common Mistakes to Avoid When Comparing Auto Insurance Quotes

Even if you’ve taken care to get fair quotes and have shopped around with multiple providers, there are still a few mistakes you can make when reviewing auto insurance quotes. Avoid the following to get the most out of your quotes:

Only Looking at the Cheapest Quote

Perhaps the biggest mistake you can make is only looking at the cheapest quote you receive. If you immediately jump on the most affordable policy, you run the risk of having inadequate coverage, which can cost you more in the long run.

For instance, if you go with the policy with the lowest monthly premium, you may have a higher deductible. And if you get into an accident, you could pay far more in out-of-pocket expenses than you would’ve spent on a slightly higher monthly premium. You could also wind up with a policy that excludes specific risks or events you wanted covered. If you don’t get comprehensive coverage and a bad storm damages your vehicle, you may wind up paying for all repairs yourself.

This is why you should continually evaluate the value of a policy and the coverage it provides, rather than focusing solely on cost.

Comparing Quotes With Different Coverage Levels

Do your best to only compare quotes with the same coverage levels. Looking at policies with mismatched liability limits or deductibles is like comparing apples to oranges and ultimately creates misleading comparisons.

You may even alter coverage levels unintentionally when requesting a quote, resulting in discrepancies. That can include things like forgetting to share the exact personal or vehicle details with each insurer, or customizing the deductible on a single quote but not remembering to do the same for others.

Be as consistent as possible with the details you provide when requesting quotes. This is one of the most effective ways to ensure you get a policy with the coverage you need at the right price.

Forgetting To Ask About Discounts

There’s a simple way to bring down the cost of virtually any auto policy: asking about discounts. Insurers often provide discounts for:

• Bundling multiple policies, such as home and auto insurance.
• Insuring more than one car on a single policy.
• Paying your policy in full upfront.
• Being a safe driver with no traffic violations or at-fault accidents in your history.
• Driving fewer miles than average.
• Having a car with specific safety or anti-theft features.
• Setting up automatic billing.
• Opting for paperless bills.
• Having a high grade-point average (only available to teens or students).
• Holding specific affiliations, such as with an alum group or a professional organization.
• Being a veteran or active duty member of the military.

Some of these discounts will be available based on your policy choices, while others apply to your general safety on the road. If you’re less likely to get into an accident because you’re a safe driver or have a new car with many safety features, you’re less of an insurance risk—thus the discounts.

Be as proactive as possible with discount inquiries. Depending on what providers offer, what you qualify for, and even stacking multiple discounts, it could result in significant savings for relatively little effort, helping you land a great policy at a great price.

Simplifying Auto Insurance Decisions With a Comparison-Based Service

Even when you’ve taken the proper precautions and necessary steps to get fair quotes, it can be challenging to decide which auto insurance policy is right for you. In these cases, comparison-based services like Coverage Professor can help.

Comparison-based services help you find auto insurance more easily. Their focus is on educating you so you can make informed decisions, not on selling you something or pressuring you into a specific policy.

Working with knowledgeable professionals ultimately reduces the amount of time and effort you spend shopping for auto insurance. You can find a policy that works well for your needs and budget without becoming stressed or overwhelmed.

What To Do After Comparing Auto Insurance Quotes

With your quotes in hand, take some time to review the details of each policy before making any commitments. Be sure to review the types of coverage included, any exclusions, coverage limits, deductibles, and discounts for each quote you receive, in addition to their costs.

If you have questions about coverage, exclusions, or anything in a quote, be sure to ask your insurance provider. Doing so is how you make the transition from researching to making a confident decision about your auto insurance.

At the end of the day, comparing auto insurance quotes is necessary to protect yourself, both on the road and at the bank. Putting in the time and effort to review multiple quotes in detail is a commitment, but one worth making to find the right policy for you.

Need help finding auto insurance without the headache? Coverage Professor can help. Simply fill out our secure form or give us a call, get in touch with one of our licensed insurance agents, and start saving on your auto policy today.

Frequently Asked Questions About Comparing Auto Insurance Quotes

How Many Auto Insurance Quotes Should I Compare?

Most drivers should compare at least three to five auto insurance quotes to get a clear sense of pricing and coverage options. Because insurers calculate risk differently, reviewing multiple quotes helps you identify meaningful price differences while ensuring coverage remains consistent.

Is It Better to Compare Auto Insurance Quotes Online or With an Agent?

Comparing auto insurance quotes online can be convenient, but working with a professional can provide added clarity, especially when coverage details vary. A comparison-based service combines both approaches by helping you review multiple quotes while explaining coverage differences and answering questions.

Do Auto Insurance Quotes Affect Your Credit Score?

Most auto insurance quotes use a soft credit inquiry, which does not affect your credit score. Requesting quotes from multiple insurers typically has no impact on your credit, making it safe to shop around.

How Often Should I Compare Auto Insurance Rates?

It is a good idea to compare auto insurance quotes at least once a year or whenever you experience a significant life change, such as moving, buying a new vehicle, or adding a driver. Regular comparison helps ensure you are still receiving competitive rates.

Why Are Auto Insurance Quotes So Different Between Companies?

Auto insurance quotes vary because each insurer uses its own underwriting model to evaluate risk. Factors like driving history, location, vehicle type, and credit-based insurance scores may be weighted differently, resulting in noticeable price differences for the exact driver.